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New Laws and Your Impacted Retirement

Hopefully the New Year is starting on a positive note for you! We want to keep you informed on some new legislation that may impact you in retirement, may impact the tax implications for your family with any Individual Retirement Accounts (IRAs) left behind, or may assist your retirement further.

In December of 2019, a piece of legislation called the Setting Every Community Up for Retirement Enhancement Act (SECURE Act) passed Congress and was signed into effect. The most important provision of this Act was the removal of the stretch required minimum distribution (RMD) provisions, meaning after the owner of an IRA passes, a non-spouse beneficiary must deplete that inherited account within 10 years. Before this change the beneficiary could take money annually based on their personal life expectancy. Now with the change, this can create higher RMDs while beneficiaries are in their working years, creating higher tax burdens to them.

The SECURE Act also delays the age of which RMDs must begin. Before in place, anyone age 70.5 would need to begin taking their RMD. Now as long as an account owner has not attained age 70.5 before the end of 2019, that age is 72. This, coupled with pending IRS rules around RMD factors, will reduce the amount of money retirees need to withdrawal each year in retirement due to the RMD rules.

The last main change that may or may not impact you is the ability to continue saving after age 70.5. Historically, once you reach that age you could no longer contribute to a Traditional IRA. Now for those still working, the savings limitation has been repealed to assist for retirement further.

While there are additional changes, and not all of these changes may impact you on a personal level, we believe it is our job to help keep you informed and up-to-date on these large impactful modifications. At First National Bank and Trust we are able to help you plan accordingly for what to do with your personal accounts, or any inherited accounts you may receive in the future. Similar to other institutions, we offer rollover retirement accounts along with Roth IRA conversion assistance. As part of our banking family, you have access to our team of professionals with the knowledge and commitment to meet your needs.

Contact us at 217-935-2148 about any of your current retirement or investment questions or needs and we will be happy to answer them to keep you and your family on the path to generational prosperity.


Matt Riley-2Matt Riley was named Fiduciary Officer and VP for First National Bank and Trust Company in December 2018, helping clients to meet their prosperity goals through investment and estate planning. Prior to joining FNBT, Matt had risk and compliance analysis experience at State Farm Bank in Bloomington, Ill. Matt is a proud Illinois State University Alumni, receiving his B.S. in Finance with an emphasis in Financial Planning. He has continued his education journey, earning other designations including the Chartered Financial Consultant designation. In addition to his bank service, Matt became a member of the Clinton Rotary Club in April of 2019 and became a board member for the Warner Hospital & Health Services Foundation in May of 2019.

About First National Bank and Trust Co: First National Bank & Trust Company is a community bank located in Clinton, Illinois. Dedicated to community prosperity, the bank was chartered in 1872 under the name DeWitt County National Bank. The name was changed First National Bank and Trust Company in 1974, and was acquired by TS Banking Group in 2017. With $186 million in assets, First National Bank is dedicated to community reinvestment and gives 10% of its net income back to the community. For more information visit firstnbtc.com.

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